There’s Reason For Concern Over Busan Industrial Co., Ltd.’s (KRX:011390) Massive 41% Price Jump
Busan Industrial Co., Ltd. (KRX:011390) shares have had a really impressive month, gaining 41% after a shaky period beforehand. Looking back a bit further, it’s encouraging to see the stock is up 78% in the last year.
In spite of the firm bounce in price, you could still be forgiven for feeling indifferent about Busan Industrial’s P/S ratio of 0.8x, since the median price-to-sales (or “P/S”) ratio for the Basic Materials industry in Korea is also close to 0.4x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
